Rio Tinto distracted by shiny new thing

Wealth Minerals

22/11/2017 03:19

(The author is a Reuters Breakingviews columnist. The opinions 
expressed are her own.) 
    By Clara Ferreira-Marques 
    SINGAPORE, Nov 22 (Reuters Breakingviews) - The mining giant 
is mulling a stake in $15 bln lithium producer SQM. 
Rechargeable-battery fever has helped lift the Chilean company's 
valuation to a tech-like multiple. Deals will return with 
industry growth, but after past mistakes including Alcan, Rio is 
looking late again. 
 
    Full view will be published shortly. 
    On Twitter https://twitter.com/claramarquesrtr 
     
    CONTEXT NEWS 
    - Rio Tinto, Canada's Wealth Minerals and Chinese private 
equity firm GSR Capital are considering a bid for a stake in 
Chilean lithium producer Sociedad Quimica Y Minera, Reuters 
reported on Nov. 21, citing unnamed banking sources. 
    - The companies are considering buying a 32 percent stake 
that Canada's Potash Corporation of Saskatchewan must divest as 
part of its merger with rival Agrium. 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
Rio Tinto, China's private equity prepare to bid for lithium 
producer SQM      urn:newsml:reuters.com:*:nL8N1NR4FM 
Potash Corp hires banks to explore sale of SQM stake    
 urn:newsml:reuters.com:*:nL2N1M42A9 
Potash Corp announcement on the SQM and other sales    http://www.potashcorp.com/news/2320/ 
BREAKINGVIEWS-Booming metal markets test mettle of memories    
 urn:newsml:reuters.com:*:nL4N1N81QZ 
BREAKINGVIEWS-Rio Tinto's new problem: What to do with its cash  
   urn:newsml:reuters.com:*:nL5N1KM4OD 
Graphic: Stocking up on lithium      http://reut.rs/2Ald5yA 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Editing by Jeffrey Goldfarb and Katrina Hamlin) 
 ((clara.ferreira-marques@thomsonreuters.com; Reuters Messaging: 
clara.ferreira-marques.thomsonreuters.com@reuters.net)) 
 
Keywords: SQM M&A/RIO TINTO BREAKINGVIEWS